The changes, which were announced by the Federal Government on Friday, will give charities (excluding schools and universities) who receive government funding to deliver services the option to exclude government revenue from the JobKeeper turnover test.

This will ensure charities who receive government revenue are not placed at a financial disadvantage.

Philanthropy Australia CEO, Sarah Davies, said the changes to the scheme are welcome news for the charitable sector, which is feeling the full financial impact of the COVID-19 pandemic.

“The Federal Government’s latest decision to exclude government revenue from the JobKeeper turnover test is extremely welcome news for the Australian not-for-profit sector,” Davies said.

The services delivered by not-for-profit organisations provide a solid backbone of support for Australians. These services are more important than ever for communities as the country collectively work through the health, social and economic challenges associated with coronavirus.

“We are pleased that the Federal Government has listened to feedback from the sector over the past weeks and has formally recognised that charities should not be disadvantaged financially for delivering these vital services,” Davies said.

“There has never been a more significant time for the philanthropic sector to step up and forward together, to support our grantees and our partners to continue to operate and deliver services for our communities.”

Philanthropy Australia has been one of many voices publicly calling for increased and targeted support for charities and not-for-profit organisations, and is committed to continuing to work with Government and the philanthropic and not-for-profit sectors to keep not-for-profit organisations operational and supported during this crisis and moving forward.